Volatility in the Silver Space a Continuing Concern for Investors

Bloomberg published an article that looks at the recent volatility in the silver space, noting that on January 29, the metal’s price sank the most since 2013. In the process, global funds linked to the white metal saw a loss in value of $645 million.

As quoted in the market news:

The volatility in silver over the past five years has been about double that of gold, data compiled by Bloomberg show. Bigger price swings increase the chances of bigger losses compared with more stable assets.

Silver futures on the Comex in New York reached a four- month high of $18.505 an ounce on Jan. 21, and were up as much as 19 percent from a four-year closing low in November. While prices tumbled 19 percent in 2014 and 36 percent a year earlier, gold futures were little changed last year after dropping 28 percent in 2013.

Holdings in ETPs backed by silver fell 0.3 percent last month, after declining 3 percent in December, while gold holdings jumped 4.1 percent in January, data compiled by Bloomberg show. Retail investors account for 80 percent of U.S. purchases, ETF Securities LLC estimates.

Click here to read the full Bloomberg report.